A Winning Package

Δημοσιεύτηκε: Νοε 13 , 2014
Συγγραφέας: Robin Copland

There has been much weeping
and gnashing of teeth lately amongst the chattering classes and
politicians in the UK and, perhaps predictably as we move ever
closer to what promises to be the strangest election in recent
history, it concerns money and the European Union.

Last month (October 2014), it was suddenly and rather
breathlessly announced in banner headlines that Britain was going
to be hit for a £1.7bn pound deficit bill from the EU. The UK
Prime Minister, David Cameron, immediately went to Defcon 12 and
very publicly rebuked the EU for the procedure it had adopted in
making the announcement, for the timing of the announcement and,
not to put too fine a point on it, for the amount involved.
Perhaps I should just say that, though the amount is undoubtedly
eye-watering if you look at it from a micro-economic perspective,
in the great scheme of things, it is actually relatively small.

Nonetheless, Cameron had to deal with it. He is
threatened, as we approach election year, by the traditional
opposition party (Labour) and by a new party, UKip, whose sole
raison d’être is to take the UK out of the EU. UKip is
gaining traction amongst disaffected UK voters unhappy at the
transfer of law-making powers from London to Brussels, so this was
a timely opportunity from their perspective. The Labour
party, as is traditional in the UK, will use any opportunity to
“oppose”, so a £1.7bn hole in the country’s accounts – no matter
how small the number really is – presents their front bench with a
great opportunity to cause mischief.

So Cameron publicly got angry; George Osborne, the Chancellor of
the Exchequer, got angry; Nigel Farage, the leader of UKip, drank
several pints of beer, smoked a few cigarettes and rubbed his hands
together with glee at this latest opportunity presented to him on a
platter; Ed Balls, the shadow chancellor, got righteous. It
was all great fun and also great political theatre for those of us
who enjoy these things.

Finally, it was announced that the Cameron/ Osborne negotiating
team had come back from Johnny Foreigner, waving a proverbial piece
of paper at the foot of the aircraft steps and announced that all
was well with the world. Under a deal that they had “hammered
out” with these nasty, faceless Eurocrats in Brussels, the actual
amount had been halved and payment had been delayed until after the
next UK general election.

Ed Balls told us that Cameron and Osborne were dissembling and
that we were due that rebate in any case – there was no new money
on the table from Europe. Nigel Farage told ITV's “The
Agenda” programme that Britain should tell the European Union to
"get stuffed" over the £1.7 billion bill. Asked what he would
do, Farage said, "I wouldn't pay it today. Never."

And then, on 8 November, the Guardian explained all! Yes,
there had been a negotiation, but there had been a significant
re-packaging of the deal. This had the benefit of allowing
the UK government to claim a significant moral victory (delayed
payment and the inclusion of an existing rebate to make the deal
more palatable from the UK electorate’s perspective), whilst also
ensuring that the EU did not lose out on a much-needed income
stream.

Negotiators too often make life difficult for the other side by
imposing a deal that is really difficult to sell to their
superiors/ constituents. The skilful negotiator will always
attempt to re-package an unpalatable deal so that is easier for the
other side to sell to their people.